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Closing Bell With Maria Bartiromo

News/Business. Maria Bartiromo. Analysis of the day's winners and losers in the stock market. New.




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Us 17, S&p 6, San Francisco 6, New York 5, Citibank 5, California 4, U.s. 4, Cnbc 3, Adp 3, Robert Frank 3, Washington 3, Rick Santelli 3, Carol 3, Shawn 2, Bob Pisani 2, Superstorm Sandy 2, Tyler 2, Brian Schactman 2, Hampton Pearson 2, New Orleans 2,
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  CNBC    Closing Bell With Maria Bartiromo    News/Business. Maria Bartiromo. Analysis of the  
   day's winners and losers in the stock market. New.  

    January 31, 2013
    4:00 - 5:00pm EST  

the tone, and there's a lot of truth to january setting the tone in terms of optimism for the year and things like that. it's the surprises in between that tend to foul us up around october. >> are you surprised we had such a strong january? >> i was particularly surprised that the market got a little bit ahead of itself. saw the steam building and engine moving. felt like it did get ahead of itself as we're going into this current level right new. >> great insight. thanks very much for joining us. i'm going to jump amend see you at the top of the next hour for "closing bell." >> what's the next catalyst to take the stock market higher? >> you know what? i'm concerned that the next catalyst might be a negative effect. we don't know. haven't heard much out of europe or heard much about the growth factors going on in there. still think we have huge pockets to worry about over there and a bit of exposure of right now the u.s. markets are looking very solid. the underlying economy is looking terrific despite the gdp numbers, excuse me, and i think there's a lot of room for growth here. >> do you feel like the earnings story will get better going
forward that maybe the last quarter was a trough in earnings and that we can improve. >> with earnings it's always improve we need to know and the visibility going forward what the problem is now. >> terry dolan, great to have you. >> thank you. >> be well. see you again soon. there goes the bell. the second hour of the "closing bell" is going to pick up in just a moment but it looks like the dow jones industrial average will have its best gain since 1994. at least that's how it looks right now. maria picks up the ball right now. and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. what a month for the bulls. the dow industrials close the book on an historic january for the stock market. we are closing at the lows of the afternoon, however, for the dow jones industrial average. finishing down 43 points, as you can see there at 13,867. nonetheless, the nasdaq also
weaker, although flat on the session. fractional loss. s&p down 3.5 points. nonetheless, really was a strong month of january. this market seeing big gains for the month. will the old adage as goes january, so goes the year hold up? back with me now is josh brown, cnbc contributor from fusion analytics and also with me is ben pace, michael sansaterra and our own rick santelli. gentlemen, good to see you. thank you so much for joining us. ben pace, going to kick it off with you. handicap the numbers for us tomorrow. how important are the jobs numbers tomorrow, and do you want to get in front of those numbers? >> well, it's you a maizing that it's a number subject to such revision is looked at so closely but it is. we've got a little bit of a preview from adp, but the problem with adp is that it excited the estimate but then the previous month was revised so we might some of that, but if that number is strong, i think, you know, in this kind of momentum-driven market, it could drive -- drive equities up a little further. >> josh brown, the energy sector
is one of only two overweights in the model portfolio that you run, that and health care. how come? >> well, i think it comes down to expectations, and -- and i think energy is the opposite of tech. with tech the expectations were very high, and there was some pretty big disappointments. with energy these stocks had a terrible year last year. no one was looking for anything great. look, we've got strength in crude and got this renaissance in drilling and production here in north america, and as a result the stocks are leading the market year to date and are poised in my opinion for much bigger things based on valuation, low expectation, et cetera, so we like the sector and a lot of names individually that look great. that's what we're focused on rather than trying to get the market direction perfect. >> rick santelli, what are you seeing inters of the energy complex there, in terms of trading on that floor? >> well, i'll tell you what, you know, there was a comment by jeff cox the last hour talking about, you know, we're getting close to $100 oil.
it doesn't seem to be having an effect on the market. traders here mesmerized by the lack of interest in the marketplace in the recent geopolitics period, so i do think that there's a whiff of commodity-type, energy-type inflation. i think the ultimate independence regarding energy, the greens aside, is going to be somewhat of a balancing act in that regard, and in terms of tomorrow's number, you know, it's always about jobs, but there's going to be a lot more digging in these reports. remember, it's not only going myself looking at labor norse participation rate with the trigger of 6.5%, i think ben bernanke is going to at least weigh in on what's real and what's memorex in terms of any drop in the unemployment rate. >> i want to get back to the energy story in a moment, because i think it's interesting what scott wapner has brought up. >> it's a positive and has opinion for years and years and years because it's intictive of
whether or not there's global demand. hence, there's the potential for global growth. we've not been seeing a market where oil and stocks are negatively correlated for almost a decade now. it's a new world. obviously there's a limit to that. >> yeah. >> obviously $5 at the pump is a non-starter for positive consumer spending. >> exactly. >> but there's a lot of room between what we used to think and between the way things work now so oil is operating as a proxy for the potential for global growth to resome. >> and also you have to consider that a lot of the energy companies are in the dow, so as they do well, the market as well. michael, let me ask you. you are the manager of the ridgeworth large-cap growth stock fund. what is wrong with technology recently? >> you know, i think it's actually been suffering through a lot of expectational hangover. you've got a lot of companies in tech that have actually done pretty decent fromperspective, the expectations are higher, companies start to disappoint from a stock percentage, so i
think finally we're catching up to reality and taking some luster out of the group. some companies are executing well but some folks have lost the short-term romans and love affair with the stocks and their expectations going forward. >> are you expecting we'll continue to see a shift, a mixed rotation in terms of groups in and out of? do you think it will continue in 2003? >> we really pick stocks, not sectors. it's been clear that contumer discretionary stocks have been the best performing stocks and for the last three years energy stocks have been right at the bottom. you can see rotation out of energy into oil but we're more yolk used on stock specific. we can find them in every sector and will keep looking at them day to day. >> ben pace, what are you expecting out of 2013? >> one thing i'll jump in on is the concept of energy and equities being correlated.
i think it's asset allocators like us that have made that happen over the last ten years or so. when gasoline priced to go up, in addition to the payroll tax increased, we want to be cautious around u.s. large-cap stock. we see what happens when interest rates go up. there will be a limit to how high rates will get but will trudge higher here on the ten-year. be careful there. >> a good point in terms of the emerging markets. how do you want to play that and participate in this, etfs or what? >> we try to find managers that try to find a little bit of alpha on that within the various markets. you could do etf iffy want to get in and try to find a
manager. there's been able to the last five of the years. >> one of the things about imerging markets that peel don't understand, the ones that are growing the fastest also pay the highest difficult dense. i think can you pla i it with etfs and to it with lower volume etfs. ent rim into that space can be easier and cheaper as well. >> low volatility and better performance, so it's almost a holy grail type of approach. >> and there are a handful of etfs that do just that. >> rick santelli, the jury is still out on whether or not it's official, whether we're actually seeing this move into fixed income and into stocks. >> i think it's a silly discussion. trim tab we had a loam records, they said globally it was about $55 billion.
think of the inflows into the treasuries by the fed alone, by the fed alone. add in mortgages, you're at 85 billion to. look at inflows between treasuries and fixed i can in stocks when you have a gorilla in the room with a printy press and all the distragss that creates. >> any areas that you think have run up too much or perhaps are going to get clipped 2013? what are you avoiding? >> we're still trying to avoid the secular space losers, people that don't have pricing power. that leaves us out of a lot of the utilities, some of the material names are still looking like value traps to us. we're road shop, so whfor us it stay away from guys perennially losing market share and look at value traps. not things we're interested in. >> gentlemen, thank you so much for your time. appreciate the conversation. we'll see you soon. >> thank you. the dow scoring the best
january since 1989. let's get to josh lipton running through the winners and losers. josh? >> reporter: let's start with the biggest gainer in the s&p this month, netflix, a monster move up 78% this month, and analysts think it moves higher from here. jpmorgan and lizzard among those telling clients to buy shares. and best bay, al well as two caps benefiting in m & a economies and one other winner we wanted to mention is june phase, the broadband products-maker swinging to a second-quarter profit. laggards this month, bears take another bite out of apple. that cap now down some 35% from its record high in september. other companies making headlines for all the wrong reasons, monster beverage, family dollar and first solar and time warner which reported leer price on hiring operate iing stocks and
stock that got crushed, constellation brand. maria, back to you. >> all right, josh. i'll take it. thanks very much. much more ahead on this jam-packed edition of "closing bell." will tomorrow's job reports be the catalyst that sends us past 14,000, or could it send the markets south? we'll check it out and how long does the head of cantor fitzgerald think the markets can keep going with this mojo? shawn matthews joinsy me in just a few minutes. return of individuals to this market and a whole lot more. and later put down the non-diet soda, why managing your weight could be a graver mat u. tyler mathison with that report. you're watching cnbc, first in business worldwide.
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welcome back. we have breaking news right now from the senate. eamon javers on it. over to you. >> as expected, the united states senate has just voted to extend the nation's debt ceiling for multiple months. the new deadline now will be may
19th, and that tees up now the next fiscal fight here in washington which will come on march the 1st. it will be over the so-called sequester. all of those automatic spending cuts, will they be allowed to go into effect? that will now be the next big question we wrestle with here in washington, maria. >> thanks so much. >> january jobs figures taking center stage first thing tomorrow morning as the white house shutters its jobs council. hampton pearson on what's sure to move the markets. >> reporter: hi, maria. tomorrow's job reports will have two part, the headline numbers on jobs and the unemployment rate. our cnbc survey predicts employers increasing non-farm payrolls by 1 of,000 jobs versus 155,000 in december. the unemployment rate holding steady at 7.8%. now today we heard that first-time unemployment claims actually jumped by 38000 to a seasonally adjusted 368,000, that according to the labor department. lost in yesterday's focus on negative gdp was the january adp
estimate on private sector job growth, up 192,000, according to the payroll processing firm, and we also got news today that after two years president obama is turning out the lights on his jobs council. white house press spokesman jay carney was grilled about that today about that fact, that the president's not met with the group of prominent business leaders for more than a year. >> fixation on an entity that the president himself created conveniently ignores all the work that the president has done towards creating jobs and fostering economic growth, work that has frequently, if not always been resisted by those who heavily promoted the policies that create the worst economic crisis in our lifetimes. >> now part two of tomorrow's jobs report, the annual benchmark revisions to both the establishment survey employers and the household survey, the preliminary estimate from the bls and 386,000 jobs added to march 2012 data, the benchmark
survey money. i'll be at the labor department tomorrow morning with the job report headlines at 8:30. maria, not had a moment sooner. >> and we will be watching and -- and listening to you. thank you very much. hampton pearson with that report. the markets shrugging off a disastrous gdp report yesterday. if we get an equally bad jobs report number will they look past the numbers or is this a sign of things to come? our next guest says our t could be blown off and another says markets will react negatively to two bad reports consistently. thanks for joining us, maria. brian, let me kick this off with you. if the jobs numbers are bad indicating we are sort of taking a step back in this economy, why would investors shrug that off? >> first of all, let's look at the gdp number, nothing really disastrous about the gdp number. the headline number didn't look great, but if you looked under the hood a lot of it was off in volatile sectors like inventories or like defense.
>> well, it was government also. >> government, right, defense. if you look at business investment and construction and consumer expenditures it was actually quite positive. now, it's going to be very difficult to trade these markets on one job report. for the last couple of years we've heard every reason why investors should not be in these markets, whether it was the election, the fiscal cliff, et cetera. at the end of the day companies continue to be in reasonably good shape. earnings continue to be okay. stocks remain reasonably priced. stocks are very cheap to bonds, and this is the beginning of a long great rotation out of bonds and into equities. >> not a lot of alternatives by the way. >> not a lot of alternatives. >> you don't think that the markets are going to be as kind to a second straight report indicating weakness in the economy. >> yeah, maria. certainly if the jobs report comes in a little bit lower than consensus expectations on the back of prion's expectation and negative gdp report, a could actually put a fair amount of volatility back in the markets. we know the s&p is up 100 points since year end, since december 30. put almost 10% since
mid-november, 6% as we closed down the month of january, so even though the fundamentals remain strong for the markets, the markets could have -- be a little bit ahead of their skis. on the back of a contraction in gdp and then also if the jobs report was a negative print, that could be a catalyst to a little more volatile markets. >> certainly underlines, well, look, things are not that great, even though we've seen a huge run-up. how do you want to trade given the uncertainty. what do i want to do ahead of the numbers then? >> certainly, let me be clear. like the fundamentals of the equity market longer term. what we're talking about here is the equity markets being a little bit ahead of themselves just in the very short term. i would say if the jobs report comes in negative and we get an equity market selloff, sensitive sectors. >> the economically sensitive groups, you want to sell those? >> will have a harder time in the very short term and those are the sectors with the biggest run up in the last 30, 60, 90 days. >> what do you think, brian?
how do you want to invest around the numbers? >> first of all, why are we assuming a negative number? adp was up nearly 200,000, look at business surveys, retailers are expecting to add workers back after shedding workers in december. >> and it was the holidays. maybe they did temporary workers. >> exactly. so you -- you have momentum in this economy. any indicator that we've been looking with regards to business sentiment, whether it was durable goods earlier in the week and investment in the gdp report. businesses continue to see -- you continue to see sentiment marginally improve. for a couple of years now businesses have indicated that they are operating with relatively lean work forces and relatively obsolete ghimt software and like in the beginning of 2011 and 2012, businesses are starting to make investment in labor and capital >> you think we'll have a pretty good number. >> i suspect we'll have a pretty good number. you know, this still is a de-leveraging process so you don't get breakout growth. businesses looking for demand and consumers looking for jobs so it's a little bit of a chicken and egg thing but at the
end of the day this continues to be modest improvements in economic conditions. don't get me wrong. any kind of bull market could have pullbacks in weak stocks and numbers around the debt ceiling and sequester, these type of pullbacks would probably represent even better buying towns. >> what do you think, darryl? >> i think brian is partially right on this. >> partially. >> partially. >> if you look at it, we pulled through a lot of jobs in q4, particularly in the retail sector. >> yeah. >> which we normally seasonably do. january is a very seasonal number as the bureau of labor statistics goes in and adjusts the population numbers in the household survey data so you tend to see a wide variance in that number, either positive or negative, right, so if it is to the downside tomorrow, i think that puts, again, some volatility back into the markets. it doesn't disrupt fundamentals of the recovery and of better longer-term issues for stocks, but in the short term it could be problem mattic. >> but we don't know that it
doesn't disrupt anything because if that number, the gdp number is showing a contraction, if that's matched by another contraction for the next quarter, there you go. that's recession, so that -- i don't think the markets are expecting recession, are they in. >> i agree, and i don't think -- nor are we expecting recession. a lot of noise in the gdp number, but certainly when you put those two together, a contraction in gdp and if -- if being the operative word, we get an ugly jobs report, i think you'll start to raise questions about how strong, how viable is the economic recovery. >> bottom line, brian is not looking for a negative jobs number. >> that's correct. >> given what we've seen. >> gentlemen, we'll be watching. appreciate your time. great conversation. january on a roll. cantor fitzgerald ceo shawn matthews joins us next and later the business of death. why watching your weight while you're alive could pay off in the after life. don't miss it. tdd#: 1-800-345-2550 when i'm trading, i'm so into it,
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how did we do in january? like maria said, terrific month. best month for the dow since 1994, talking january. s&p best one since 1997. s&p up, dow transports up and the russell 2000 had a good month as well. what's next? well, february is historically a weak month but don't worry. we're in that sweet spot of the best six-month period between november and april because we usually get very strong march and april. the rally may not yet be over. maria, back for you. >> all right, bob. thank you so much. bob pisani. the dow may have ended down today but it was a very good january overall and the street and the markets are pushing hard to top their all-time highs of 2007. joining me now with his own wall street perspective s schaub matthews, ceo at can't fitzgerald & co. welcome. >> thank you. >> what do you make of this market ral? how do you see it? do you think this is partly retail investors coming back or what? >> whether whu look at the flow of funds, retail money has come back into the marketplace.
you've also started to see a rotation of some of the fixed income products into the equity market as well, and i think that's a longer term theme that will play out over the next couple of years and we're in the first inning of that starting right now. >> so, do you -- so you think it's the first inning. you think this trade is for real. money will continue to come out of fixed income and finding its ways into stocks? >> i do. look at the duration in the fixed income markets. tremendous amount of duration. you have interest rates at fairly low levels at ten-year. i would be a seller at the long end of the fixed income curve and that money has to go somewhere. looking for returns and looking in the equity market at this point in time? what's your take on the bond market right now? we know that the federal reserve says it will continue buying more bonds. what's your take on the market? >> i think they are saying, that and they will do it, but at some point they are going to start to pull back on that buying, whether it be nine months, 12 months, whatever it is, but we're getting closer to being in the money in that option so in
reality people have to set up for that trade six months in advantage, so you're starting to hear chatter were people looking to exit the trade at this point in time and, you know, starting to see signs of that already. >> and, i mean, overall, you know, we're seeing really yields in equities. i mean, is that part of the issue? the fed has created this environment where there are not that many alternatives, to you know, multi-nationals that pay dividends. >> that's 100% true, so when you look at it, you have 3% dividend payers versus a 2% ten-year, especially in a market that's going up. seems like had a no-brainer. people will look to put their money there, and i think institutions are starting to look as well as retailers, starting to look at that trade and putting their money to work in the equity market. >> so, let me ask you this, shawn, because we're looking at really a fundamental change happening across wall street. we know that investment banks are slinking. compensation is down, and yet you're expanding, building up your investment bank. what do you see that perhaps
others don't? >> well, there's a structural change in how the finances services landscape is going to appear over the next five to ten years so larger institutions clearly having to deal with regulatory issues, cost of capital has gone up. from our perspective we're getting in and taking advantage of that and building out our franchise so we look at it at least as a five-year structural change and cantor is cheerily taking market share and will continue to take market share this that time. >> how significant of an expansion are you looking to do? are you hiring right now? >> we're aggressively growing. we're looking to hire an investment banking and certainly to look to build out our asset management business. our trading businesses on a global basis as well so we're looking at this as an opportunity to step in as other people pull become on their operations. >> do you have the talent pool out there that you would hike to see? it used to be that so many talented kids graduating from college and grad school headed for competitive high-paying jobs on wall street, and, of course, now that compensation has changed and health care has
become much more center stage with so many cities rewiring for health care. what's your feeling about this trend and the skill sets required? are they there? can you find the people you need? >> there's still a lot of talented people out there, so we're not having trouble finding the talent pool. i agree. people are diverting away from wall street at this time. it's cyclical in nature. i think they will come back at some point in time but in reality a lot of talented people out there. they are looking for opportunity, and we're here to take advantage of it. >> let me ask you in terms of the flow. where are you seeing the flow right now from institutions? what are they most interested in terms of allocating capital right now, shawn? >> certainly looking to get into the equity space and seen that in january. clearly a good month, though volumes are still rather light. the vix is at an extremely low level. you're still seeing people looking for alpha, looking for opportunities where there's a spread in product so the mortgage space is still an interesting place. you see high yield where people are still looking to put money to work.
by and large people are starting to talk about the rotation trade. >> yeah. >> i know it's the early stages but certainly that rotation trade is going to start to accelerate here in the next six months to a career. >> are you still seeing interest in the emerging markets? for a little while the emerging market corporate bond story was certainly as competitive as the equity story was for people's money. do you still see that? >> absolutely. the emerging market space is still an interesting one. been a fair amount of volatility in the space but people are buy by and large still looking to put money to work. there's money chasing assets, and there's not enough assets so there's a question of where to get the best risk-adjusted return and that's where the fight is going on right now. >> i love what you've done in terms of superstorm sandy and the firm has given 10 million to victims of superstorm sandy. why is it so important to you? >> certainly we're looking to give back. we were just in new jersey today and schools that our kids,
people who work at this firm, the kids may go there and certainly live in the area and we're looking to give back so we think it's a very important part of being a private partnership and certainly going through our own issues ten years ago, and we're trying to give back to the community and think it's a great way to do it. >> good stuff. thanks very much. shawn, good to talk with you. appreciate the time tonight. >> thank you, maria. >> up next, taxes one of the sure things in life, right? but this is a category you don't want your state to rank high in. which state ranks first for the highest taxes of a percentage of your income. wealth editor robert frank with the rankings next. and the other sure thing in life, death. coming up, the business of dying and why watching your waistline may be just as important in death as it is in life. also ahead -- >> i talked to chris this morning, and you have to understand that chris made a very idiotic statement. >> yeah, san francisco 49ers ceo jed york doing some damage control following anti-gay comments made by this player,
49ers cornerback chris cull i ever. we'll have the latest on the controversy. stay with us. [ woman ] don't forget the yard work!
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citibank popmoney. easier banking. standard at citibank. makes it easy for anne to manage her finances when she's on the go. even when she's not going anywhere. citibank for ipad. easier banking. standard at citibank. welcome back. who is number one when it comes to states taking the biggest bite out of your income tax? our wealth editor robert frank
with the hoedown. all right. let hear it, robert. >> all right, maria. we know that california has the highest official tax rate at 13.3%, but it also ranks number one when it comes to state,al and sales taxes combined for the wealthy. a new study from the institute of taxation and economic policy looks at the share of income paid in sales taxes and excise. taxes eat up 8.8% of the income for the top 1% of california, and that's before the recent rate hike. hawaii ranked second at 8% followed by vermont, new jersey and oregon. now, these numbers are lower than the official tax rate because state and property taxes are often deducted from federal taxes. nationwide the 1%ers paid 5.6% of their income in state taxes. the bottom 20%, they pay almost twice as much relative to their income. now, the report takes aim at states that are looking to reduce or eliminate income taxes saying it would be unfair and
make an unfair system even worse while the bottom are paying more of their paycheck to taxes. the fact, however, remains, high earners pay the bulk of the income taxes in many states. can you read the full story at's inside wealth. back to you. >> so, california's the leading one, but new york is very close, right? new york is, what, you've got 9.8% state ant 3.6% city. >> actually, again, talking about what people actually pay relative to their income, not the published rates. >> and it's surprising to me that new york was not up there. i think it's 7%, maybe even 6%, so it might have been in the top ten but not in the top five. >> okay. that's after deductions is what you're saying. >> that's correct, that's correct. >> stay right there, so does being taxed to the max affect how people invest. carol pepper is with us from pepper international and deals with high net worth clients and joins us as well as robert carroll. you say no one should change investment style due to someone's tax levels. >> that's right.
i mean, last year was a year when you could do a lot of effective planning prior to the tax changes. people took care of the lower capital gains rate so they did sales prior. did larger estate planning deductions and did work then and now the rates are there. investing should not be driven by taxes. a lot of way to make money so even though you're paying more taxes you're net earning more money. >> and you said even though new york is a high tax place between state and city taxes, you've got -- it's a great destination. >> that's right. >> you see a huge number of extremely wealthy people living in new york, and they are not living just because the taxes are high. >> despite. rob, you say taxes do matter when it comes to how the wealthy are investing. >> we do have proof of this last year. we can't ignore the fact that last year we had, i think the numbers are out today, more than $200 billion in dividend income taken. that was because of the tax hikes. people were selling houses. they were selling stock. they were even selling businesses in advance of that
tax increase. >> right. >> and i don't think it's a one-time thing. that proves that taxes affect investing decisions, and i think with capital gains going up a lot of other state, california just raised, some states are cutting, i think that's proof that people in the decision tree of investing, taxes are now higher because the rates are higher. >> so carol, from taxes to investing, what do you advise high net worth investors to do? >> most high net worth investors are seeing what 2012 looked like now at the end of january because they are finally getting in all the consolidated numbers and the big question is should we go back further into the equity market, and my answer is yes. the i think this is a great year for the u.s. equity markets and even the international equity markets. at loy of fear and talk about waiting for the pull backand i'll go in then. the danger is you'll miss the entire market waiting for the significant pullback.
>> look where we are right now. robert, have some high worth investors already missed the boat on the january ral? >> no question they have. when i talk to wealthy investors, what they really wanted to do in the past year is reduce volatility in their portfolio after what we went through in the crisis, and they accept the fact that in exchange for reducing volatility, they are going to miss some of the big market ral his. so where they are putting their money, alternative investments where it's more stable, it's property and hard assets, things that won't move as wildly as stocks, and, you know, for right now they are accepting the fact that they are giving up some upside in exchange for that. we'll see if that real continues and whether that mindset will change or not. >> that's interesting because they are not necessarily going for equities as robert is reporting. real estate is a great home for their money. >> that's right. real estate is a huge part of most wealthy people's portfolios. when i talk about them going into the equity markets, many people had pulled completely out for their long-term asset allocation so they were down to maybe 3%, 4% of what they would normally have in the equity
markets. of course they had property. most high net worth people have everything, venture capital, hedge funds, private equity, master limited partnerships. there's a wide variety of investments that they have. >> and you don't see any sort of direction as a result of taxes. >> well, certainly there's more master limited partnerships are more attractive. municipal bonds in some ways are more attractive if the credit quality is there, but i would say generally people are aware they will have to pay higher dividends taxes but still like the dividends when you look at that in comparison to what they are getting on bond yields >> one of the things would i add, maria, everyone i've talked to whether it's wealth advisers or the wealthy, they want to know right now the after-tax return, and that is a very critical ter, the after-tax return, and, you know, that tax piece of that just went up, so that's going to affect the math here, whether you're looking at stocks, bonds, real estate, so i can't think -- you cannot ignore that fact. >> absolutely. robert, great point. thank you so much. robert frank, good to see you.
we so appreciate it, and carol, nice to have you on the program. carol pepper joining us. up next, heavy times, one-third of adults are considered obese. find out how that is changing life in the funeral business, and also ahead, sewage controversy. san francisco 49ers ceo is weighing in on anti-gay comments made by one of his players. he's not happy. his reaction is next. so, beginning today, my son brock and his whole team will be our new senior social media strategists. any questions? since we make radiator valves wouldn't it be better if we just let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes." i don't have the door code. who's that? he won a contest online to be ceo for the day. how am i supposed to run a business here without an office?! [ male announcer ] fast, reliable deliveries worldwide. fedex. [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ]
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apologized for making anti-gay comments. the team's ceo jed york in damage control right now. brian schactman catches up with him in new orleans. brian, over to you. >> well, maria, now had two non-football controversies at the super bowl. first the deer antler spray issue with ray lewis and now anti-gay comments from a san francisco 49er, and in case people don't know the story, want to give them a little bit of a context. during tuesday's media day, 24-year-old defensive back chris culliver was interviewed by comedian artie lange and asked if he would consider pursuing a gay man while in new orleans. this just what happened on media day. he responded, quote, i don't do the gay guys, man. i don't do that. ain't got no gay people on the team. they gotta get up outta other if they do and considering san francisco in its role as one of the most progressive cities in the country, can you imagine the firestorm that it caused. well, today, culver apologized. >> i don't have no differences
in other sexual tis and, you know, just like that, and that's -- like i said, that's not what i feel in my heart, and i treat everyone equal, any type of way, so it's not how i feel. >> i spoke with team ceo jed york this morning to see how the team would accept that apology. >> chris made a very idiotic statement that was, you know, taken out of context after an hour of being at media day where that's not really what he's used to or what he's comfortable with. he didn't realize, that you know r know, that the big level that this story would take on, the role that it was going to take on, and he was truly apologetic. >> you're going to support him moving forward. >> i'm supportive of his comments of wanting to learn and get to note lbgt community, and i want to do everything that we can to help make that happen. now it's up to chris to help live up to that apology. >> basically it is up to him to
make it right in his actions and moving forward it will determine his future with san francisco. he won't be suspended for the gape. no rocking the boat before the biggest game in the super bowl so he will be in uniform on sunday, maria. >> we'll watching. brian schactman. from the gridiron to the graveyard, the world's biggest makers of funeral caskets are widening their business models to keep up with our fatter waistlines of all thing. a preview of tyler's special that debuts tonight on cnbc at 9:00 p.m. eastern. ty, over to you. >> you can live in a double wide and can you go in a double wide. the aurora casket company takes in almost $200 million a year making it the third largest casket company in the united states, but with cremations on the rise the indiana company has had to adapt to shrinking margins and those growing waistlines. take a look. >> >> the casket sales follow the death rate, and the death rate typically follows your cold and flu season. you start in thanksgiving, cold and flu season starts, casketed
deaths start going up and come february, march, that number starts to drop off. >> they have also made accommodations for another american trend. one-third of adults in the u.s. are now considered obese. >> a body a year and a half ago, we upgraded the size and width of all of our metal caskets by an inch and a half. make units up to 46 inch wide that fit people upwards of 600 pounds. >> caskets are actually the biggest expense when it comes to funerals. want to know how the costs breakdown. let's show you what an average funeral costs beginning, yes, embalming, about $628 on average nationally. number two, as we go through the list of things, the metal casket. on average $2,295. some about $3,000, figure out what you want there. hearse fees, call them funeral coaches, $275, 3198 is your subtotal. throw in all the fees including the funeral home services, non-deductible fee and removalal
and transfer and other preparation of the body, basic memorial printed package, you come up to a grand total average nationally of $6,560. they can go. obviously, maria, much higher than that, and for more on the $17 billion death care industry, please tune in tonight to the premiere of "death, it's a living." it's at 9:00 p.m. eastern and pacific only right here on cnbc. maria in. >> tyler, it's so fascinating. i guess i had no idea that this was such a big business, and when you go through line by line you see where the money is going. has this become a big business over the years, or how has this just exploded in numbers? >> well, slowly but surely it's become the $17 billion a year business that it is today. funeral directors have been rather ingenious in finding new ways, new kinds of services and ceremonies to create, to memorialize the passing of a loved one and those things cost
money. there is inflation in the funeral business as there is in all businesses. again, cremation has been on the rise that. goes the other way because cremation is about one-half to one-third as much as a full casketed burria. the big driver of growth, maria, will be the baby boomers who are just now reaching the age at which they pass from the scene. that is why the growth pros texts here, companies like the private equity firm koeberg, bought aurora caskets. they see a future here, a growth business in the business of death. >> we'll be there tonight at 9:00. thanks so much. "the business of death." one technology company moving after hours, meanwhile, let's get over to josh lipton at the market flash. >> maria, watching shares of net suite, a tech company on cloud-based computing. they beat on the top and bottom lines this. stock, maria, has been a crusher, up some 80% in just the
past 12 months. back to you, maria. >> all right. josh, thanks so much. the big report tomorrow that we're all focused on, the jobs reports. first thing tomorrow morning, our panel of market pros next will weigh in on how it could move your money and before that opening bell sounds. stay with us on "closing bell." let's go. ♪ ♪ ♪ . . another big night on the town, eh? ...and the return of life lived large. ♪ humans -- sometimes life trips us up. and sometimes we trip ourselves up.
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welcome back. let's get you prepared for tomorrow. 30 seconds on the clock. our next guests will tell you what could move the market tomorrow. we break it down right now with mason slain and michael james. good to see all. mason, it's been forever. good to have you back with us. we start with you, 30 seconds on the clock. what do you want to look at tomorrow? >> hi, maria. i think the employment report is going to have some impact tomorrow, depending on what it is, but i think it's transitory. i think investors need to realize five important tail winds working for them, which are strong housing market, a good auto market, very good corporate earnings, growing bank earnings and, importantly, money remains for sale. >> yeah. money remains for sale. you mean the fed. >> yeah, i think there's plenty -- money is abundant and cheap.
and as long as it stays that way, it's a great tail wind. >> keep watching that. break it down for us. 30 seconds on the clock. what are you looking at? >> hey, maria. we think the economic news coming out tomorrow will have a bullish bias to it. so, be watching the technicals, such as the mcclelland oscillator which has dipped below zero line, indicating the bears are in control. we think we have a few more days to go on this pull back. we are watching the unloved agricultural commodity index which appears to be making a bottom. and we're keeping an eye on the 20-year treasury as a gauge of investor fear. >> all right, you got to explain the mcclelland oscillator for viewers who aren't that technical. we'll do that next conversation. >> yes, ma'am. >> you are up, michael. >> thank you, maria. obviously, as the first two guests alluded to, the most important thing is going to be the jobs report. with the s&p at 1500, we're at a line in the sand. we need to see a jobs number over 200,000 for the market to take the next leg higher.
one of the stronger sectors this year to start the month has been energy. with chevron and exxon both reporting tomorrow morning. going to be a key barometer. and really want to pay close attention to how facebook follows through with today's strength. 8% rally off the lows, very strong action. we remain very bullish on facebook. and i want to watch it go higher tomorrow. >> we'll watch that. gentlemen, thank you very much. appreciate your time tonight. we'll be watching those stories tomorrow when that opening bell sounds. after all this time in washington, they still haven't learned it's all about jobs. we'll talk about it next. stay with us. all stations come over to mission a for a final go.
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and finally tonight, my observation on jobs. they have not come back yet. and unfortunately coincidence today as we learn that the obama administration will allow his jobs council to expire on the eve of the all-important january jobs report, due out tomorrow morning. the president created the council two years ago. but he has not met with them in about a year. i'm not sure that in and of itself is important or even that the jobs council is now gone. but jobs certainly are crucial. and so is the perception of jobs. let's remember this. is now the president's fifth year in office do we still need this group to offer